American Express has released a report that will worry business travellers for the New Year. The report shows how consumers will have to fork out more for hotels, airlines, and even car rental companies, according to the report.
High demand and high fuel prices are believed to be the factors behind the increases.
The report highlighted that airfares have risen by 18 per cent over the last two years because of the decrease in seat availability on carriers, even though demand for them has been steady.
2007 could also see airline fares increase by a further 6 per cent.
Car rental firms are expected to follow airlines in exercising strict capacity control, making fewer cars available and pushing prices upward as a result. Car rentals will also be hit by the news of an expected rise in fuel costs.
The best option for business travellers, who will be trying to keep travel costs down, would be to rethink hotel choices. With luxury hotel costs projected to increase by 8 per cent, many business travellers may consider switching to less expensive properties . Companies will be asking their employees to consider shorter stays at less convenient, and less costly resorts.
According to the American Express report, a typical business trip in 2007 will cost 4.5 per cent more than in 2006.
Business Travel Costs Set To Rise In 2007
Tue, 02 Jan 2007
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